CANADA FX DEBT-C$ turns lower in choppy markets

TORONTO, Oct 21 (Reuters) - The Canadian dollar was lower
against a rebounding U.S. currency on Thursday afternoon,
reversing earlier gains as appetite for risk faded on stock
markets and commodity prices fell.

Earlier, the currency had a firmer tone against its U.S.
counterpart as world stocks and U.S. equity futures ticked
higher and the U.S. dollar came under broad selling pressure.

But Toronto's main stock index was lower at midafternoon,
as were U.S. stock indexes. The price of oil, often a driver of
the Canadian dollar, was off nearly 3 percent around $80 a
barrel.

The U.S. dollar, meanwhile, was able to rebound as doubts
arose about how far-reaching any stimulus measures brought in
by the U.S. Federal Reserve might be.

Investor focus was on the Friday and Saturday meeting of
Group of 20 finance and central bank chiefs in South Korea. It
is expected to try to reach agreement on a common path to
manage currency, trade and macroeconomic imbalances.

"The volatility speaks to the friction that exists in the
marketplace," said Jack Spitz, managing director of foreign
exchange at National Bank Financial. "That friction is not
limited to traders but also held by central bankers themselves.
As they meet this weekend to discuss the potential for currency
accord, the market itself is still undecided as to whether any
success is going to be derived.

"That uncertainty is playing out with respect to the
volatility being seen in the currencies."

At 2 p.m. (1800 GMT), the Canadian dollar CAD=D4 stood at
C$1.0299 to the U.S. dollar, or 97.10 U.S. cents, falling more
than a penny from its earlier high at 98.36 U.S. cents, and
well off Wednesday's finish at C$1.0222 to the U.S. dollar, or
97.83 U.S. cents.

Canadian bond prices were mixed across the curve. The
two-year bond CA2YT=RR was down 3 Canadian cents to yield
1.391 percent, while the 10-year bond CA10YT=RR gained 22
Canadian cents to yield 2.737 percent.
(Reporting by Ka Yan Ng; editing by Peter Galloway)